Market Update - December 11, 2014

Posted on Dec 11, 2014
CBOT futures are mostly higher led by soybean and soybean meal. Futures soared when trade opened at 830 am CT. Soybeans have sustained a share of its rally but corn futures have fallen all the way back to the lows. The soy complex is strong without support from a strong weekly export sales report. Wheat appears to be benefitting from the bean rally.

Cattle futures are mostly weaker on light cash trading at lower prices. Feeder Cattle futures are mostly down the daily $3.00 limit. Futures opened this morning near steady but quickly headed south and hit limit-down 90 minutes later. Packers are already losing money and the Choice Cutout is down 1.22 to 248.73/cwt at midday.

Lean Hog futures are also weaker on concerns of rising hog supplies and lower prices. FOB Plant Pork cutout dropped 2.11 to 90.18/cwt on a 10 pct loss in picnic value and weaker loins and hams.

US equities are up sharply on a positive retail sales report and short-covering from this week’s sharp selloff. Household net worth declined in the third quarter for the first time since the third quarter of 2011, the Federal Reserve said on Thursday. Net worth declined $141 billion due to a nearly $600 billion drop in household equity holdings. A $214 billion increase in real estate holdings helped to offset the decline in stocks. Total debt rose 4.4 percent, the Fed added.

Corn Mar -1 393 (392-401); Jly -1 407; Dec -1 420 Bean Jan +6 1038 (1026-48);Jly +6 1056; Nov +4 1014 Meal Jan +3 372; Jly +1 349 Oil +16 3191 Wheat Mar +1 583; Jly unch 588 (580-93) KC +1 618; MGE +2 607 Oats unch 310 Rice -14 1236

LC Dec +27 16275; Feb +17 16302; Jun -32 15505 FC Jan -300 22860; Mar -285 22440; Aug -257 22465 LH Dec +20 8747; Feb -5 8450; Jun -60 9205 Milk Dec -15 1772; Jan -16 1574

US$ +.4%

Dow +1.2% SP +1.4% NAS +1.6% Tran +1.3% VIX -12.6% 16.20

WTI -.1% Brent +.5% Gas +.4% NG -1.6% HO +1.8% Eth +2.2% Gold -.1% Slvr +.2%

5-yr +.053 1.622% 10yr +.040 2.209% 30yr +.031 2.866%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 12/11/14 Receipts: 4200 Last Week: 3039 Year Ago: 2980 ***Total receipts include 1025 head sold in CPH sale Wed. night. Compared to last week steer and heifer calves sold mostly steady except featherweight steers sold 5.00 to 10.00 higher with good demand and lightweight heifers 5.00 higher with good demand despite CME futures prices down the limit early week. Market was softer for calves over 600 lbs as week progressed due to falling CME cattle futures. Yearling steers and heifers weak. Quality was average through good. Slaughter cows sold steady to 2.00 higher with good demand. Slaughter bulls sold 2.00 to 3.00 higher with good demand.

Total supply included 08% slaughter cows, 01% slaughter bulls, 01% replacements and 90% feeders. Feeder supply 47% steers, 18% bulls, 35% heifers with 52% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates